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1. Introducing Integrity to
Subprime Auto Lending
April 2020 // Kut Auto Finance LLC // Proprietary and Confidential

2. DISCLAIMERS
2
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PERIOD OF TIME.

3. Despite the strong
economy, auto loan
defaults were twice
as high at year end
as they were at
their 2010 peak.
3
Q3
2003
Q4
2019
Pre-COVID
$66 Bil90+ Days Delinquent Auto Loans
Source: New York Fed
2010
Post-Financial Crisis

4. Lenders and
dealers are
part of the
reason their
own loans
default.
4
So where does the
problem lie?
Loans are
too large
Payments
are too
high
Interest
Rate
Mark Ups
Dealer
Add-
Ons
Bait and
Switch
Tactics
Lender
Fees
Preying
on the
Vulnerable
Lack of
Respect

5. 5
Gap $895
Warranty
$2,904
Vehicle Value = $12,225
Total Cost over Life of Loan
Backend
Products
$40,176
Sample Subprime Loan in Portfolio

6. Copyright Kut Auto Finance LLC © 2020 - Proprietary & Confidential
Improve customers’ economic health
and increase profits through
ethical refinancing
6
Kut Auto Finance:

7. 7
It starts with treating
customers with basic
dignity
Become an Advocate
Protect the Vulnerable
Respect
Customers
Lower interest rate
Shorten loan duration
Remove dealer mark-
ups
Reduce monthly
payments
Refinance
Auto Debt
Existing predatory
lending leads to self-
destructive loans
Reimagine
Subprime
What if?...

8. ETHICAL FINANCE WORKS
8
On The Road Lending and Bonnie CLAC
*OTR 2019 Annual Report, Changemakers 2018 Report
4%92%
loans with
payments made
in the past 30
days
520 157
average credit
score at time
of loan
lifetime
loss rate
8%
average increase in
credit score
borrowers
establishing
credit for the
first time
5.5X
Lower
than the National
average
52%
Lower
than the National
average
Not For Profit Organizations
Originating Subprime Auto Loans at 9.75% APR

9. OUR PROCESS
9
Universe of defaulted
subprime auto loan portfoliosTruDecision scores risk of
default on every loan within
portfolio
Kut has created a proprietary risk model
to predict loan performance, cash flow
and collateralization of portfolio
Scoring Modeling is matched
to a target IRR to generate
acquisition cost of portfolio
Kut individually refinances loans in
portfolio at a discounted rate of 8%
Benefits passed on to
customer with ongoing
service and respect
$

10. OUT WITH THE OLD…
10
• Larger positive impact on credit
Assumes 12 months of payments before default
…IN WITH THE NEW
28% 8%
$18,578 $16,600
$40,176 $19,452
72 months 48 months
$541 $405
&
APR
Amount Financed
Total Payments
Loan Term
Monthly Payments
Loan Savings over
$20,000
Shortened term
$136 Lower Monthly
Payment
• Faster repayment of principle
• Higher resale value
Additional Benefits:
Kut Auto FinanceCurrent Lender
Discounted Rate

11. HOW WE MAKE MONEY
11
Kut purchases a defaulted loan with face value of $16,600 at a 50% discount
Full Pay Off
Resell Loan (after
12 months)
Total Loss (after 12
months)
Repossession (after
12 months)
Purchase Price, with
discounted Add-Ons
($6,500) ($6,500) ($6,500) ($6,500)
Payments Made $19,452 $4,860 $4,860 $4,860
Recovery (45%) $5,824
Loan Sale Price (75%) $9,699
Amortized Price $12,632
Servicing/Acq Fees ($4,077) ($1,577) ($1,577) ($1,577)
Collection Fees ($485)
Total Profit/Loss $8,875 $6,482 $9,415 $2,122

12. UNDERPERFORMING LOAN EXAMPLE
12
Kut purchases a defaulted loan with face value of $16,600 at a 50% discount
Repossession
(Loan Remains
in Default)
Total Loss
(after 12 months,
insurance lapsed)
Maximum Loss
Repossession
(no Vehicle
Recovery)
Repossession
(after 3
months)
Purchase Price,
with discounted
Add-Ons
($6,500) ($6,500) ($6,500) ($6,500)
Payments Made $0 $4,860 $0 $1,215
Recovery (45%) $5,824 $6,437
Servicing/ Acq
Fees
($1,025) ($1,577) ($1,025) ($954)
Collection Fees ($485) ($285) ($485)
Total Profit/Loss ($2,186) ($3,217) ($7,810) ($287)

13. COVID
The recent pandemic has created an ideal buying
opportunity as debt owners need to raise cash.
13
IDEAL
BUYING
OPPORTUNITY
50% 45%
Loan
Cost
Vehicle
Value
Face Value
40%
35%
Loan
Cost
Vehicle
Value
35%
30%
Loan
Cost
Vehicle
Value
Loan
Cost
Vehicle
Value
Pre-COVID Normal Recession During COVID
9 to 12 months
Post-COVID
Source: Experian, Black Book, Fitch Ratings
50%
45%
Business As Usual

14. IDEAL BUYING OPPORTUNITY
14
Kut purchases a defaulted loan with face value of $16,600 at a 35% discount
Full Pay Off
Resell Loan (after
12 months)
Total Loss (after 12
months)
Repossession (after
12 months)
Profit/Loss at 50% cost of
face value
$8,875 $6,482 $9,415 $2,122
Profit/Loss at 35% cost of
face value $11,365 $8,972 $11,905 $4,612
Adds an additional profit of approximately
15% of the face value of each loan

15. PROFORMA CASH FLOW
15

16. PROFORMA BALANCE SHEET
16

17. INVESTORS
Minimum investment of $25,000
Fund minimum size is $750,000 with a
maximum size of $6,000,000
Fund will begin loan acquisition at $750,000
capital raised
Join us and be part of the solution
17

18. USE OF PROCEEDS
18
Max. Proceeds Min. Proceeds
Sale of Equity
Proceeds from sale of units $6,000,000 $750,000
Offering Expenses and Commissions
Est. Offering Expenses (1) $20,000 $10,000
Est. Brokerage Commissions (2) $300,000 $37,500
Total Offering Fees $320,000 $47,500
Corporate Applications of Proceeds
Acquisition Expenses $260,000 $39,200
Initial Loan Acquisition $5,260,000 $643,300
Working Capital $160,000 $20,000
Total Corporate Use $5,680,000 $702,500
Total Use of Proceeds
Offering Expenses and Commissions $320,000 $47,500
Corporate Application of Proceeds $5,680,000 $702,500
Total Proceeds $6,000,000 $750,000
87.6%

19. TEAM
19
8 years as a Finance
Director in 3 states.
Nathaniel Syme
Co-founder and manager
of a $55 million subprime
student loan portfolio.
Mary Jo Terry
Over 17 years of
founder, capital
strategy, and VC
experience.
Kasten Spethmann
FUND MANAGER
COMPLIANCE, ACQUISITION &
UNDERWRITING ADVISOR
STRATEGIC CAPITAL MGMT
& MARKETING ADVISOR
Has purchased over
$500 million in subprime
auto debt. Has serviced
over 2 million auto
loans.
The Innovate
Companies
PORTFOLIO, COLLATERAL MGMT,
TRUST MGMT, & REPORTING
CEO of TruDecision
Co-founder of Exeter
Financial, a subprime
lender with over $2 billion
in assets.
Currently a fund manager
with over $100 million of
subprime auto assets.
Daniel Parry
PORTFOLIO ANALYTICS, RISK,
& PERFORMANCE MODELING

20. Americans deserve reliable, and affordable transportation.
The solution isn’t a better economy,
it’s better loans and repayment options.
April 2020 // Kut Auto Finance LLC // Proprietary and Confidential